A great example of a process that's run every week/month, the employee payroll process is one you'll want to get right every time. Here's a template to help you get started. Check the .Gov website for more information: https://www.gov.uk/running-payroll
This process features on our list of 25 processes every business needs.
1Check all new employees have been set up in the payroll software
Check the 'add employee to payroll' tasks have been completed
2Initiate the payroll run for the period you want to pay your employees for
This is normally found under the payroll tab in your accounting software
3Check the gross pay calculation for each employee is correct
Salary paid staff: take their annual salary and divide by the number of payroll runs in a year (12 if you are paying once a month)
Hourly paid staff: take their hourly rate and multiply by the number of hours to be paid
3.1Add any additions to the relevant employees payslip
Additions might include overtime
3.2Add any deductions to the relevant employees payslip
Deductions might include sickness absence or a season ticket loan
3.3Check the pension calculations on each employees payslip
Has the correct % been deducted from the employee?
Has the correct % been contributed by the employer?
4Once you are happy the amounts on the payslip are correct - confirm/complete the pay run
This is normally performed by a button within the payroll run you are working on in your accounting software
5Set up the employee payroll payment with the bank
Login to your internet banking software and add the net pay amount for each employee to the payment you are setting up
6Submit the Full payment submission (FPS) to HMRC
Your accounting software may do this automatically for you once you have completed the pay run
6.1Set up the PAYE payment to HMRC
The amount to pay is usually found the tax & filings area (sometimes with the payroll tab) of your accounting software
7Submit the pension contribution amount to the pension provider
The pension contributions are usually found in the reports tab of your accounting software
8Set up the pension contributions payment to be made to your pension provider
9Approve employee expenses
Due: 3 days after task is started
Add a link to your expenses approval area here!
9.1Set up the expenses payments to employees
10Email out the payslips to your employees
Most accounting software packages the function available for you to email your employees their payslips straight from the software package